A bull put spread is an options strategy where you sell a put option at a higher price and buy one at a lower price for the same asset and expiration date. This helps generate income and limits losses ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Bear put spreads limit loss to net debit, capping maximum at difference between two puts. This strategy suits investors expecting a slight stock/index drop due to specific events. Profit potential is ...

Calendar spreads are an option trade that involves selling a short-term option and buying a longer-term option with the same strike. Traders can use calls or puts and they can be set up to be neutral, ...

Credit spreads might seem intimidating, but they're a lower-risk way to sell put premium A short put spread is a neutral-to-bullish options strategy that is usually initiated when the trader believes ...

To construct a short put spread, you would first identify a chart level that has served as support in the past A long put spread is a bearish options strategy that is usually initiated when the trader ...

It's time to talk about the spread with three names and two personalities. Calendar spreads, a strategy constructed with a short shorter-term option and a long longer-term option with the same strike ...